Govt Launches Employment Linked Incentive Scheme, to Generate Over 3.5 Cr Jobs

ENA Economy 2025-07-02 14:31:14 New Delhi, Jul 2 (KNN) The Union Cabinet, led by Prime Minister Narendra Modi, has approved the Employment Linked Incentive (ELI) Scheme, a major initiative aimed at generating over 3.5 crore jobs in the next two years. With a focus on enhancing employability, promoting social security, and boosting the manufacturing sector, the scheme was announced in the Union Budget 2024 25 as part of a Rs 2 lakh crore employment package targeting 4.1 crore youth. With a total outlay of Rs 99,446 crore, the scheme will cover jobs created between August 1, 2025, and July 31, 2027. It is structured in two parts — one for first-time employees and another for employers generating new jobs. Part A focuses on first-time employees. Around 1.92 crore individuals entering the workforce for the first time will receive one months EPF wage, up to Rs 15,000, in two instalments. The first instalment will be given after six months of service, and the second after 12 months and completion of a financial literacy program. To encourage saving habits, part of the benefit will be placed in a fixed deposit, withdrawable at a later date. Part B targets employers. Establishments hiring new employees with salaries up to Rs 1 lakh will receive monthly incentives ranging from Rs 1,000 to Rs 3,000 per employee, depending on their wage category. To be eligible, firms with fewer than 50 employees must hire at least two new workers, while those with 50 or more must hire at least five. The manufacturing sector will receive extended benefits for the third and fourth years to further drive job creation. All payments under the scheme will be made through Direct Benefit Transfer (DBT). First-time employees will receive funds through the Aadhaar-based payment system, while employers will be paid directly into their PAN-linked accounts. The ELI Scheme is expected to not only create jobs but also promote formalization of the workforce and extend social security coverage to crores of young Indians. (KNN Bureau) 42656 https://knnindia.co.in/news/newsdetails/economy/govt-launches-employment-linked-incentive-scheme-to-generate-over-35-cr-jobs 2025-07-02 14:31:14 knnindia.co.in Govt Launches Employment Linked Incentive Scheme, to Generate Over 3.5 Cr Jobs